Bpls Manual

PHILIPPINES DEVELOPMENT FORUMTowards a Business Friendly Permitting System in the Philippines DRAFT/NOT FOR QUOTATION V4.080710: 1 FOREWORD In his inaugural State of the Nation address, President Benigno Aquino III called on the local government units to “look for more ways to streamline our processes to make business start-ups easier.” In keeping with this challenge, the Department of the Interior and Local Government (DILG) and the Department of Trade and Industry (DTI) signed a Joint Memorandum Circular (JMC) and an accompanying Joint Administrative Order on August 6, 2010 that set standards for processing applications for new businesses and business renewals. This initiative is envisioned to be the first project under the newly-organized Sub-Working Group on Local Investment Reforms that aim to promote local economic development through improvements in the competitiveness of LGUs and the overall investment climate at the local level. As with other countries, local government units (LGUs), especially cities, have an important role to play in driving national economic growth. Improving the country’s competitiveness standing from 144 among 183 countries in the latest World Bank study on “Doing Business 2010 – Reforming through Difficult Times” will require involving the LGUs in reforming the country’s business registration process. Compliance with the standards for processing permits will require streamlining the business permits and licensing system (BPLS) of cities and municipalities. There had been past eforts at simplifying BPLS that benefitted some 62 cities and 209 municipalities nationwide through various projects of development partners such as from GTZ, USAID, CIDA and IFC. For the first time, however, the government will be imposing service standards consistent with Republic Act No. 9485, otherwise known as the Anti-Red Tape Act of 2007 (ARTA) and the JMC. There is therefore a need to capacitate cities and municipalities to comply with these standards. Several training workshops are planned for the purpose and this manual is intended to be a reference material that LGUs can refer to in the process of streamlining their operations. The document benefitted from consultations with selected LGUs held on August 4, 2010. A separate training module for trainers has been prepared to accompany this manual. The preparation of this manual built on existing guides and toolkits prepared in similar projects in the past funded by the development partners. Its main diference with existing BPLs manuals is the setting of BPLS standards. The streamlining processes incorporated in the manual were enriched by the experiences in simplifying the most developed highly- urbanized LGUs in the national capital region and the middle income municipalities nationwide. While still appearing academic, it is hoped that the document will be useful as a guide to reducing the cost of business registration in the country. Acknowledgements This manual is one of the knowledge products which will be used in the nationwide streamlining of the business registration processes in the country, a joint project of the DILG and the DTI, as conveners of the Working Group of Growth and Investment Climate and the Decentralization Working Group under the Philippine Development Forum (PDF). Undersecretary Austere A. Panadero of the DILG and Undersecretary Zenaida C. Maglaya of DTI both provided the policy and operational guidance to the project. The Local Government Academy (LGA), under the DILG, coordinated the Trainers’ Training component of the project including the preparation of the manual with support from the Operations Policy Research Group of the DTI. Director Marivel Sacendoncillo and her team at LGA were responsible for the logistical support as well as the refinements in the training components of the project. Complementing the LGA was the DTI team headed by OIC-Director Abby Zurita and her team which coordinated the donor support to the project and provided the technical advice to the manual and other aspects of the project. Two teams of consultants with expertise in simplifying processes for new business applications and business renewals jointly prepared the manual with inputs from government. The consultants include Ms. Menchie Kho, Mr. Noel Macalalad, Mr. Tim Moiket, Ms. Deeda Gonzales, Mr. Benjie Barreto formed the core team that produced the manual. The BPLS streamlining project is a model of harmonized multi-donor support consistent with the Paris Declaration on Aid Effectiveness with the development partners funding diferent aspects of the project. Manual preparation and the accompanying training modules, including the preparation of the JMC were funded by AECID through its Support for Local Reform Project (SLRP) and the GTZ through the Decentralization Project. The training workshops for DTI, DILG and various stakeholders which will undertaken in August-September 2010 will be supported by the GTZ, USAID through its LINC-EG project, the International Finance Corporation. The understanding and facilitation of the following persons in developing this manual from the development community is very much appreciated: Dr. Herwig Mayer and EJ Solis of GTZ, Mr. Gonzalo Serrano and Sly Barrameda of SLRP. Acronyms ARTA ASEAN BFP Protection BIR revenue BOSS Shop BPLO BPLS CDA DILG DTI EO FALAR FSIC JMC Standards in LCE LGU MOA Agreement NGA Agency OBO Official PBR Registry SEC SWG-LIR Anti-Red Tape Act of 2007 Association of Southeast Asian Nations Bureau of Fire Bureau of Internal Business One-Stop Business Permits and Licensing Office Business Permits and Licensing System Cooperative Development Authority Department of the Interior and Local Government Department of Trade and Industry Executive Order Fire and Life Safety Assessment Report Fire Safety Inspection Certificate Joint Memorandum Circular on Guidelines in Implementing the Processing Business Permits and Licenses in All Cities and Municipalities Local Chief Executive Local Government Unit Memorandum of National Government Office of the Building Philippine Business Securities and Exchange Commission Sub-Working Group on Local Investment Reforms .......... Signatories....... ...................... 10 Overview of BPLS Reforms ......................................................................................................................................................................................................................................................... 13 2........... 7 Benefits to the Businessmen ................................................................Contents FOREWORD .......................... 9 Present State of National and LGU Competitiveness ....................... 9 Benefits for the Country ........................................................................................................................................................................ ......................................................... BPLS Standards for Business Registration................................................................ Introduction ........................................................................... ............ 16 1................ 17 3..................................................... Processing Time ................................................................................................................................................................................................. 23 ....... The Number of Steps ................................ The BPLS Unified Form ............................. 7 Why Streamline..... 16 Overview of the Registration Standards ... 16 2................................... 2 Acknowledgements............................................................................................................................ 3 Acronyms ................................................................................................................................................................................................................................................................................... 17 4.................... .................................................................................................................................................. 16 Key Features of the Standards ............................................................... 7 Benefits to the Local Government Units.......................... 7 Legal Basis for Streamlining ............................................................................................................. .......................................................................................................... ............................................................................................ 4 1...... ................................................................................. 32 1...... 30 Process Design ..................................... 26 2....... Procedures to Attain BPLS Standards ....... 28 2... Preparing the Action Plan ........... Orientation of Key Stakeholders on the Rational of BPLS Reform................ 26 3................................................. Obtaining Commitment to Undertake BPLS Reforms.........................................3............................. Assessing the BPLS Process ................................................................................................................................................................................ 26 1.................................................... Organizing Key Working Groups ................................................................................................. 27 Diagnosis ......................... ........ 33 .............................................................................................................. 28 1............................................................................................................................................. .......... 32 Institutionalization ................................. ......... ................................................................................................................ Getting Commitment to the BPLS Reforms .................................... ......... 25 Overview ................ Preparing the BPLS Process Table ....................................................... 25 Pre-Streamlining Activities............................ ............................................................. 33 1................................................................................................................. ................................. Presentation of the Action Plan ... 55 ............................................................................................................................................................................................................................................................. Putting in Place Monitoring and Evaluation System ....... 38 2. 44 Annex 2: BPLS Unified Form............................................................................. 33 2............... 43 Annexes...... .................................................. 38 1........................................... 39 References ........... 34 3.................................................................................................. 51 Annex 6: Sample Monitoring and Evaluation (M & E) Form............................ Capability Building and Strengthening.............................................................. 36 4.....................................2. 33 1.......................................................... ............................................................................................................................................................................. Computerization of BPLS Operations...................................................................................................................................................... 33 Implementation ........ 53 Annex 7: Sample Executive Order Creating the Business Permits and Licensing Ofice ............................................ .................... 37 5............................................................................................................................................................................................... Preparing a BPLS Communication Plan .................................... 44 Annex 1: Joint Memorandum Circular ............ Legal Institutionalization ............................................................................ Challenges in Implementing BPLS Reforms ................................................ 38 Sustaining BPLS Reforms..... 39 4........... Designing the Business One-Stop Shop (BOSS)............ Training Frontline Personnel in Customer Service....................................... ................................. 420 LGUs have submitted reports to the DILG in compliance with the CURE requirements. capacity building and a policy audit and compliance tracking system. launched the Comprehensive and Unified Response to Eliminate (CURE) Red Tape in Local Governments Program. (3) requirements. a step-by-step guide on how to avail of these services. the government passed RA 9485. while having the same objectives as ARTA. and standards on quality and timeliness to be expected from the agency. mandating all government agencies to simplify front line service procedures.1. Motivated by the importance of providing prompt and efficient frontline services and eliminating graft and corruption. There are the legal reasons that compel cities and municipalities to simplify their permitting systems. The JMC. the JMC (Annex 1) that sets specific standards for processing business permits and licenses at the city and municipal levels. Introduction Why Streamline The reasons for streamlining are varied. advocacy. the DILG for its part. the DTI and DTI signed on August 6. This program consists of three components. One of the major requirements of the ARTA is the submission of a Citizens Charter. showing “the range of specific services provided by that office. (4) processing time. formulate service standards to observe in every transaction and make known these ii standards to the client. i more popularly known as the Anti-Red Tape Law (ARTA) . Legal Basis for Streamlining There are two legal issuances that require LGUs to streamline their business registration system – RA 9485 and the Joint Memorandum Circular (JMC) on Guidelines in Implementing the Standards in Processing Business Permits and Licenses in All Cities and Municipalities. The standards which will be described in greater detail cover the following processes: (1) forms. The rationale behind for the legal statutes is however the economic benefits that will accrue to LGUs and the nation as a whole with streamlined processes. To further implement ARTA. (2) forms used. (4) processing time. (5) fees and charges. reiterates the importance of promoting local . Non-compliance with the law would subject the erring officials to sanctions. 2010. To implement the law. and (4) number of signatories. (2) steps. Around 1.” Specifically the processes targeted to be simplified includes: (1) steps in providing the service. the benefits of BPLS streamlining include: (1) improved revenue generation. Benefts to the Local Government Units Based on the experience of the LGUs which have earlier reformed their BPLS. (3) more complete information base on business enterprises in their . (2) reduced time and resources spent by LGUs in the BPLS process.investments and accelerating local economic development. Table 1: Comparison of Business Tax Collection Before and After BPLS Reforms in Four Cities BUSINESS TAX COLLECTION (P million) REFORMING LGU Barili.75 (2008) Marikina City 159. there will be an initial increase in outlays for computer equipment.794 (2008) 67. (4) more informed policy and decision-making. and (5) reduced graft and corruption. a simplified and an efficiently-run BPLS ofice improves the image of the Local Chief Executive and the LGU. the LGUs may enjoy savings from the streamlining.75 (2007) 95. The LGUs. which are perceived as businessfriendly usually attracts more investments and reap awards. the BPLs streamlining also results in reduced operational expenses for the LGUs.511 (2007) AFTER REFORMS 0. The most important benefit of streamlining is the increased revenues that usually accrue to the LGU after streamlining.67 (Q1 2006) % increase 55. Galing Pook.4 41.g. In the more progressive cities. e. will computerize its BPLS operations.3 28.4 85.0 (Q1 2007) Ormoc City 23. Cebu Iloilo City BEFORE REFORMS 0. Lastly.067 (Q1 2005) Source: GTZ Streamlining the BPLS Learning Module 204. . Table 1 show that the average increase in business tax revenues was more than 50 percent for the four (4) cities that streamlined their BPLS. If the LGU. With shorter processing time. software development and capacity building. (6) better image for the LGU in the area of good governance.0 In addition to increased revenues. Furthermore. Reduced graft and corruption is usually associated with streamlined BPLS which may reduce by a third the cost of “standard operating procedure”. however. reduced face-to-face transactions with the public and fewer forms to be processed. a more streamlined business registration system requires data management improvements that enable LGUs to have a better picture of the businesses in their locality. which may be ofset by better coverage in the medium-term. the streamlining leads to business and tax mapping that helps LGUs catch delinquent businesses who fail to register and file taxes.localities. term.2 ( Q1 2008) 42. ..that further boost the LGU image. Good governance is an important factor for enhancing LGU competitiveness. Benefts for the Country The Philippines need investments from both local and foreign sources. registering . the direct beneficiary of a streamlined BPLS is the businessman.) dealing with construction permits. The sooner these are acquired.UNTAD. employing workers. which summarizes the amount of investments received by selected ASEAN countries from 1999-2008. With simpler permitting system.Benefts to the Businessmen Obviously. Why is the infow of investments anemic in the country? In 2007. the factor often cited for the country’s seeming lack of competitiveness is governance (IMD 2010). Unfortunately the country is a laggard and the least favored by foreign investors as shown in Figure 1. the businessman will be better able to access financing and other support for their operations as proofs of registration are a usual requirement of banks and financing institutions. the better for the businessmen. th 134 . Other than poor infrastructure facilities.e. starting a business. i. there were 10 common business activity indicators used. The following year. The ranking in the survey suggests that an investor will look at the first 143 countries before looking at the investment opportunities in the Philippines. ASEAN. our ranking slipped down further to th th. The survey also shows that the rest of the world has much lower regulatory barriers for investments In a recent survey conducted by the World Bank called ‘Ease of Doing Business’ among 183 countries. then 140 and recently 144 . 19992007 200 150 100 50 0 Singapore Thailand Malaysia Vietnam Indonesia Philippines Source . Figure 1: Foreign Direct investments in Selected ASEAN Countries. Less corruption and reduced time spent in registering their businesses redound to financial savings. the Philippines ranked th 130 in the Global Ease of Doing survey. paying taxes. enforcing contracts and closing a business. protecting investors. The higher the hurdles. trading across borders. . the more difficult it is to jump over and continue running. These indicators are like the hurdles that runners need to cross to get to the finish line.a property. getting credit. the International Finance Corporation (IFC) in 2008 also conducted a survey in 20 metro cities in the Philippines to assess the cities’ performance on three out of the ten criteria for competitiveness: (1) procedures for starting a business. Therefore. (2) dealing with licenses. These improvements include (1) decrease in the 14 . the primary objective of streamlining is to speed up the process of starting and renewing a business in your city/municipality. The National Competitiveness Council (NCC1) conducted a survey early part of 2010 to get the perception of businessmen regarding business permit registration processes in 17 cities and municipalities in Metro Manila. Present State of National and LGU Competitiveness Philippines’ ranking in global competitiveness surveys has always been at the lowest third of countries despite national government conscious efforts such as the organization of the National Competitiveness Council. The NCC1 survey indicate that slightly more than half of the respondents felt improvements in the registration system in 2010 as compared to previous years. As an extension of their Global Doing Business Survey.Streamlining represents our attempt to lower the first of the ten hurdles mentioned above. LGU Competitiveness Two surveys have been commissioned in recent years to assess the level of competitiveness at the sub-national level. (3) registering a property. number of steps in processing application for renewal 15 . Muntinlupa (88. it took a month for most of the respondents to get the permit (Figure 2). Marikina and Navotas. (4) ensuring fast. there were still laments on (1) the long time in processing/securing business permits.19%). However.5%) Paranaque (53.7%) Taguig (38. efficient and convenient services to the applicants (9. 9. 4. Among the NCR cities.5%) 13.3% On processing time. On the processing time to get a business renewal. 6. Manila (28.(40. 2. (3) processing time (28. Quezon City (23.2%) Marikina (81%) Navotas (75%) Caloocan (74%) Mandaluyong (56. 7.8%) Less than a One week Two-three One month More than week week s one month 15. Figure 2: NCC Survey on Length of Time Needed to Get Business Renewal 90 80 70 Length of Time Per City (Percentage of respondents who were able to get their business permits from LGUs in one week 84 77 65 60 61 50 40 35 30 20 10 0 1.3%) Makati (50%) Malabon (50%) Valenzuela (41. .96%). Pasig (8. 8. 10. (2) tedious processes and procedures for permitting and the many requirements of national agencies.4%) 16.57%). 5.25%) Las Pinas (55. the IFC also surveyed selected cities in 2008 where it took from as low as 27 days to a high of 52 days to start a business compared to 1 Singapore’s five days (figure 3). 11. and (3) the need for improving the service orientation of frontline personnel. the top three areas where processing time took less than a week include Muntinlupa. 3. .1 [Indicate assumptions in IFC survey] . . This indicates the need for parallel reforms at the national level.Figure 3. IFC Survey on the Number of Days to Start a Business DBP2008: Days to start a business Taguig Marikina Caloocan Mandaluyong Malabon Makati Cebu Parañaque Navotas Las Piñas Lapu-Lapu Mandaue Pasig Pasay Tanauan Valenzuela Quezon City 27 28 28 29 31 32 32 33 33 33 33 34 35 35 36 37 37 San Juan Muntinlupa Davao Manila 39 40 42 52 0 5 10 15 20 25 30 35 40 45 50 55 ASEAN average (64 days) Singapore (5 days) 7 The IFC 2008 DBP Survey also measured the procedures for starting a business. The range of steps varied from 15 to 23 with the national government agency (NGA) requirements accounting for the majority compared to those from LGUs (Figure 4). Mobilizing Champions for the BPLS Reform Process Implementation of the BPLS reforms will require engaging various sectors to support the reform process. To date around 61 cities and 209 municipalities nationwide have undergone some form of BPLS streamlining. (2) processing time. it is only last year with the passage of ARTA that the government decided to set some benchmarks for processing business permits particularly on 3 areas: (1) number of procedures or steps in processing permits.Figure 4: IFC Survey on the Procedures to Start a Business DBP2008: Procedures to start a business Manila 4 Marikina 4 Taguig 4 5 Cebu 5 Lapu-Lapu 5 6 Parañaque 6 Pasay 6 6 Muntinlupa 16 16 11 17 11 17 11 17 17 7 11 18 11 18 18 11 Las Piñas 8 Malabon 8 11 19 19 11 20 11 9 21 11 10 Pasig 11 Tanauan 11 Valenzuela 11 Davao 16 11 7 7 San Juan 15 11 11 Mandaluyong Navotas 15 11 Mandaue Makati 15 11 11 Caloocan Quezon City 11 11 22 11 22 22 11 11 12 City level (includes Barangays) level 23 National 6 Overview of BPLS Reforms The reforms in business registration started even in the 90s. (b) harnessing support from the LGU Leagues . This includes: (a) engaging LGUs to undertake the reforms. (3) adopting a BPLS unified form. About 20 of the cities and all of the municipalities trained adopted at least one of these standards. There were 26 cities and 4 municipalities trained to adopt these standards for processing business renewals. The BPLS reform program as currently formulated by DTI and DILG consist of five components: 1. However. mostly funded by development partners (Table 2). to encourage their members to participate in the program. (c) engaging the private sector including the business sector. civil society organizations both at the national and local levels to participate in the program. the academe. (d) . ARMM 4 cities IFC & LCP NCR DTI 3 11 cities. Table 2. 209 municipalities 2. Institutionalization To ensure sustainability of the reforms. 3. 7. Computerization of the BPLS Process Efficient process re-engineering requires some form of computerization. With the new BPLS standards. 22 municipalities Type of Reform New & Renewals Remarks w/o standards w/o standards 12 cities New & Renewals New 8 cities.coordinating concerned NG Agencies and their regional offices to manage the reforms. The NCC has been requested to take the lead in this component of the program. and (e) organizing the development community for the up scaling of the reforms. there may be a need to review the existing software with the objective of assisting LGUs in applying IT solutions to the streamlined BPLS processes. (b) the number of signatories.7. 10. and (d) processing time. 4 12 municipalities Renewals w/ standards TOTAL 10 regions & NCR w/o standards 61 cities. Current Status of BPLs Streamlining Initiatives Donor GTZ Regio n 6.10. the simplification of the BPLS will start with process re-engineering that focuses on four areas: (a) use of one application form. 11. of LGUs USAID 9. it is important to ensure that local regulations or legal instruments are issued in support of the . Simplification & Standardization of the BPLS Process The streamlining of the BPLS starts with setting performance standards for processing permits. 4. 26 cities. 122 municipalities New & Renewals w/o standards DTI & DILG 3. 4A. Using the ARTA as framework for the standards. (c) steps.8 No. There are existing software programs developed in the past for BPLS including those that are being widely promoted by government such as the e-BPLS by the National Computer Center (NCC2). These will be discussed in greater detail in the next chapter. (b) organizing local business chambers. backsliding to the old ways will be inevitable after every change of administration. Other aspects of institutionalizing the program include: (a) setting up of a monitoring & evaluation system. civil society organizations (CSOs) for process .streamlined processes. Otherwise. (c) implementation of the Citizens’ Charter. education and communication (IEC) campaigns. Improvements in Customer Relations The BPLS program also addresses the business complaints on poor service delivery in the permitting process. (c) working for ISO certification. . (d) conduct of customer relations training. (b) setting up of complaints desk. (b) conduct of information. This will entail complying with existing laws that were passed to protect the consumers: (a) compliance with the Anti-Fixing Act. Other areas of reform which can lead to a more customerfriendly BPLS include: (a) establishing One-Stop Shops (OSS). (d) developing incentive systems to promote best practices.improvements & monitoring. hand-in-hand with process re-engineering is improving customer relations in cities and municipalities. Hence. 5. The BPLS Unified Form The government is enjoining LGUs to use a single unified application form to be used for both new business applications and business renewals. gave indications on how the country can improve our competitiveness ranking relative to other countries and attract our fair share of investment. then in the future Key Features of the Standards 1. Based on the JMC. (2) the number of signatories. if not in this round of streamlining. Mandating a unified form entails eliminating the many forms that an applicant needs to fill-up repeatedly in the LGU offices.e. the owner of the business and the declared gross sales. and various constraints. The field experience provided a gauge on what is achievable given our local conditions. To satisfy the client. By using the unified form. Annex 2 contains the prescribed BPLS unified form which comes in two pages. it automatically cuts down a number of steps in the current registration process. BPLS Standards for Business Registration Overview of the Registration Standards The Business Registration Standards is the optimum mix between results of field experience and global competitiveness performance indicators. The BPLs unified form contains the information needed to complete the registration process and facilitates exchange of information among LGUs and national government agencies. most efficient set of procedures and the least time possible in securing a permit. The global competitiveness performance indicators. LGUs are encouraged to surpass the standards. has basic information on the business. The formulation of the standard took into account two important perspectives in process re. These consist of four out of the five processes recommended for simplification under ARTA.2. which is signed by the business owner or by his duly authorized representative. available resources. on the other hand. the objective of setting standards is to ensure that the applicant goes through the simplest. the applicant and the government. the government needs to review its process and streamline these to attain the service standard. The first page.engineering. which will be used for . It must be emphasized that the standards set by the national government is the minimum performance target for LGUs. (3) the steps. (4) processing time. the government is setting four standards in processing business permits: (1) the form. i. Overall. The second page of the form.computing business taxes. fire safety clearances. zoning. fees and charges imposed by the LGU with the corresponding amounts and the names of the assessors. barangay.g. . is the assessment and verification form which lists (1) the taxes. e. (2) the regulatory clearances issued. which is filled up by the LGU. sanitary. all cities and municipalities are required to limit the number of steps that an applicant has to follow in applying for a mayor’s permit to the following five (5) steps (Figure 6): (1) (2) Securing an application form from the city or municipality. The Number of Steps A step refers to an action or actions that applicants and/or government agencies undertake as part of the process of applying for and/or processing business permits and licenses. (3) One-time assessment of taxes.2. it is a primary measure of process complexity and indicates the number of face-to-face interactions (or interfaces) between the applicant and the government (local and national). Signatories Signatories refer to the final approving authority or authorities whose signatures are affixed to a business permit or Mayor’s Permit to make the document legal and binding under the law. are deputized by the Mayor 3. fees and charges. Per the JMC on BPLS standards. fees and charges. and charges imposed by the LGU. (5) Securing the Mayor’s Permit upon submission of Official Receipt as proof of payment of taxes. To avoid delay in the release of permits. (4) One-time payment of taxes. signatories. The ARTA limited to five the number of signatories for new or renewal of business permit. Filing or submission of the accomplished application form with attached documentary requirements. A common performance indicator among global competitiveness surveys. fees. Reducing the number of signatories is a key reform that makes streamlining possible. Figure 5: Standard Steps in Processing New Business Applications and Business Renewals 3 . usually the Municipal or City Administrator or the BPLO. health and sanitation undertaken during the construction stage shall not be conducted again by the LGU as part of the requirements for business registration.3.1 Requirements Compliance with the above standard steps will require the following: (1) Inspections usually undertaken for compliance with zoning and environment ordinances. the Zoning or the City/Municipal Planning & Development Office . (2) Joint inspection teams composed of the heads or representatives of the Business Permit and Licensing Office.2 Understanding the Standard Steps Step 1: Securing an Application Form This is the first interaction of an applicant with the government registration process. (4) cost to register the business. To a local government. A typical applicant will normally inquire about the following: (1) registration steps. the City/Municipal Health Office. which can either be physically secured in the BPLO or accessed online at the LGU website. this is the most significant of all interfaces. (5) information on taxes. 3. to implement streamlined procedures for assessing and paying fire code fees that will enable the LGUs to implement that above steps. Instead. A number of LGUs have already introduced innovations in providing application forms. as necessary. (3) The Joint Inspection Team shall be headed by the Business Permit and Licensing Officer who shall oversee joint inspection operations. (4) The Bureau of Fire Protection shall enter into a memorandum of agreement with cities and municipalities. (3) time in days to register the business. (2) requirements or supporting documents. the City/Municipal Engineering Office. building and fire safety ordinances. inspections to check compliance with initial submissions during construction stage will be undertaken within the year after the issuance of the business permit. the City/Municipal Treasurer’s Office and the Bureau of Fire Protection shall be organized to conduct joint inspection of business enterprises as required by law. Some LGUs distribute the form to business . This is where the local government starts creating an impression to the investor. (6) other information that is specific to the business. .establishments as part of the IEC campaign on BPLS. Monitoring failure rates and following up the reason for “failure to register” will provide LGU with a good indication on the level of service provided. the unified form is the instrument that will facilitate a single payment. charges and taxes as required by diferent ofices. Single Payment can be manually implemented or with the aid of a computerized Business Permit and Licensing System Step 5: Securing the Mayor’s Permit This step is usually facilitated by reducing the number of signatories in the final document Tables 3 and 4 illustrate the standard steps which applicants shall follow in securing the Mayor’s Permit for new business applications and business renewals. The lack of clear guidelines/instruction on relevant requirements will result to multiple visits to this office in an attempt to secure and comply with the relevant requirement for the intended type of business. In order to simplify the registration process of new business. the applicant will need only to pay one time at the end of the process. Step 4: One -Time Payment Instead of requiring the applicant to pay for every relevant fee. There are a number of ways single assessment can be facilitated. The most common are the following: (1) the form is passed-around. (2) a single person is tasked to do the assessment. . among department representative within the one-stop-shop. Again.Step 2: Filing an Application Form This step is where the efficiency of the information preparation and dissemination process (step1) is tested. Step 3: One-Time Assessment The unified form is a key tool to facilitate one-time assessment of relevant fees and taxes. or ( 3) assessment is integrated in the programming of the city’s Business Permit and Licensing System. those with recently issued building and occupancy permit need not be inspected again. fees Treasurer’ & charges s Ofice plus all (TO) documents Cashier from steps 2 Backroom Frontline OR of taxes. The Standard Steps for the Registration of New Businesses Clien t Steps Activities 1 2 3 4 5 Documentar y Requirement Secure an Application Form File Application for New Business Permit One-Time Assessment One-time payment of taxes. Location Map and Barangay Clearance. sign and release Mayor’s/Busin ess Permit Standa rd Time (Timefra me of Action & Waiting Time of 1 day or less Goo d Practi ce 5-10 5 – 10 Minutes 1-2 days 5 – 15 or less Minutes 1 day or less One day or less 5 – 10 Minutes 1015 Minute s 30 . fees – BPLO & Backroom charges paid – Mayor / and Deputized all documents Signatory from steps 2 – 4 One-time assessment of taxes. if any All documents from step 2 LG U Offices Required Actions Frontline – BPLO Give Application Form. fees and charges based on documents from inspection reports (occupancy Collect and issue Oficial Receipt for payment of taxes. List of Requirements Frontline – BPLO Written acknowledgem ent receipt Frontline – Assessor Backroom – BFP Assessme Frontline Assessment – of taxes. copy of Fire insurance policy. fees & charges Print. fees & charges Claim Mayor’s/Busi ne ss Permit Filled-up BPLS Unified Form. SEC/DTI/CDA Certificate of Registration. Occupancy Permit.Table 3. copy of FSIC for Occupancy permit. Good Practices in Registration of New Business Clearances issued for recent Occupancy Permit will serve as inspection reports for new business registration.g. Business moving into a space that is not designed for the intended business operation will need go back to construction/renovation process. there is no need to inspect the same premise again during the registration process. As such. an insurance company may occupy a business space designed for offices. e. 31 . JointInspection Team conduct inspection immediately after issuance of permit Businesses that moved in to a business space may no longer require inspection if the space is designed for the same type of business. . the numerous inspections conducted during the construction stages should not be repeated during the business registration process. The clearances issued by various inspection units should suffice for the registration of the new business. 80 to 90 percent of the new business requires some form of renovation. the occupancy permit should have not been issued at all. The presence of an Occupancy Permit already ensures that all regulatory requirements pertaining to the specified use have already been complied with. repair or construction prior to occupying the business space. As per studies with other LGUs that streamlined their business. In this regard. otherwise.Ap pli ca nt Office of the Building Official Plannin g and Develop ment Office BP LO Asset Specific Inspecti on Units The fow chart above shows one of the many ways to link building permit process to the business registration process. List of Requirements Review completeness of answers in the application form and documentary requirement. and travel time within the site provided 33 . waiting time. sign and release Mayor’s/Busin ess Permit Timefra me of Action & Waiting Time of 5 – 15 Minutes 10 – 20 Minutes 10 – 15 Minutes 1015 Minute s 4. fees – BPLO & Backroom charges paid – Mayor / and Deputized all documents Signatory from steps 2 – 4 Required Actions Give Application Form. The Standard Steps for the Renewal of Business Permits Clien t Steps Activities 1 2 3 4 5 Documentar y Requirement Secure Form for Business Applications File Application for Business Permit Renewal Submit documents for one-time assessment One-time payment of taxes. previous business permit. endorse to next step One-time assessment of taxes.Table 4. Processing Time Processing time refers to the time spent by an applicant from the submission of the application form to the LGU to receipt of the business permit. fees & charges Submit documents & claim release of Mayor’s/Busin ess Permit LG U Offices Frontline – BPLO Filled-up BPLS Unified Form. Such period consists of transaction time. fees & charges plus all documents from steps 2 Frontline – BPLO Frontline – Assessor Backroom – JIT Frontline – Treasurer ’s Ofice (TO) Frontline OR of taxes. fees Print. statement of gross sales from previous year All documents from step 2 Assessment of taxes. fees and charges based on documents from step 1 and client monitoring Collect and issue Oficial Receipt for payment of taxes. by an LGU for business registration. 34 . which includes payment of applicable fees. This IEC campaign is undertaken during the last 6 months of the year. This time is. is considered a simple transaction which should take LGUs five (5) days to complete. This time is inclusive of all processes performed by the LGU to complete the steps before a new business permit is issued. inclusive of all processes performed by the LGU to complete the steps before issuing business permit renewal. charges. good practices in BPLS streamlining have established a standard of 5 days in acquiring a new business permit and less than a day for renewal of business permits. Box 1: Examples of Good Practices A number of LGUs have surpassed the ARTA standards. However. These two processes can be undertaken even with manual operations although with the assumption that all businesses have pre-complied with all regulatory requirements. also. The foundation of the Manila City’s design revolves around an in-depth appreciation of the city’s regulatory intent that allowed them to re-draw the registration process using their understanding of the city’s regulatory framework as basis in designing the steps. Total transaction time is estimated to be twenty to thirty minutes. they totally eliminated the need to fill-up an application form. The objective of . per ARTA.Processing new business applications is considered a complex process. where a BPLO representative types in the applicant’s data into the QC system while doing a validation chat with the applicant. on the other hand. This step was replaced with a validation interview. The LGUs should target these benchmarks in the BPLS process for issuing new or renewal of permits. Quezon City’s simplification efort focuses on minimizing the time spent by an applicant in lining up to be served. Registration of New Business Manila City managed to cut down its registration process into two steps (File and Pay). In the process. and taxes. Processing applications for business renewals. They. however. The system then automatically sends the application information to the respective department for the scheduling of inspection. which according to the ARTA should be accomplished in ten (10) days. Renewal of Business Registration Cebu City managed to cut down the number of renewal steps to four by doing a massive Information Education and Communication (IEC) Campaign. with most investing in Information Technology (IT) which is really not mandatory. commit to mail out the official permit and plate within nine days. this campaign is to distribute application form and ensure that businesses are informed of new developments for renewal. . 2. These activities include: (a) providing orientation workshops on BPLS reforms. Implementation This phase includes preparing the work and financial plans and conducting dry-runs on the streamlined process.3. Pre-Streamlining Activities These preparatory activities aim at soliciting the support of the stakeholders and the commitment of the local chief executives to the BPLS Reforms. Diagnosis The diagnosis phase consists of two activities: (a) determining the current BPLS flowchart for both new and business renewals. Sustaining the Reforms This phase involve setting up a monitoring system for BPLS reforms including the conduct of Client satisfaction surveys and engaging stakeholders like local business chambers and civil society groups to regularly monitor LGU compliance with the reforms. Process Design The design phase involves preparing the BPLS action or reform plan. and (2) assessing BPLS process vis-a-vis the standards set by government and identifies the gaps. which assigns responsible persons and identifies the budget requirements for the reforms 4. . 6. 5. (b) obtaining the commitment of Local Chief Executives to undertake the reforms. Procedures to Attain BPLS Standards Overview The process of streamlining LGU BPLS consists of six phases (Figure 6). (c) once commitment is secured. Institutionalization This phase ensures that the legal requisites to the reforms are prepared and legislated. closely adhering to the BPLS continuum which the GTZ has been promoting in the Visayas regions: 1. The more progressive LGUs have sought ISO certification of their BPLS to sustain the reforms. organizing the local government office to undertake the reforms. 3. Orientation of Key Stakeholders on the Rational of BPLS Reform. the Ways and Means Committee Chairman of the Council and the Treasurer. The reform process begins with an orientation to acquaint key stakeholders about the rationale of introducing standards in streamlining BPLS. It is necessary to get the selected participants to attend to hasten the take-of of the BPLS reform process. Barangay Captains. acceptance. The commitment and support of key stakeholders is obtained after the orientation in the form of a Memorandum of Agreement (MOA) among the Mayor. The key participants to invite are the Mayor. the DILG and DTI that will bind the LGU to undertake the full process of instituting BPLS reforms (see Annex 3). the Vice Mayor. who are key participants of the BPLS streamlining initiative. Local Council Members. the business sector. Obtaining Commitment to Undertake BPLS Reforms. the economy and the general public. It specifically seeks to generate interest. Phases in Streamlining Business Permits and Licensing System Pre-Streamlining Activities 1. 2. and (3) an overview of the BPLS Reforms. Heads of the various LGU agencies involved in the BPLS process and the officers of key private sector organizations in the locality. will sign as . and commitment for action to the BPLS reform process from key LGU Officials and support from the private sector. The Vice Mayor. The workshop may be part of the capacity building program jointly organized by the DILG and DTI as part of the Nationwide upscaling of BPLS Reform project covering topics about: (1) ARTA as the legal basis for reforming BPLS.Figure 6. (2) benefits of the BPLS reforms to the LGU. witnesses. . 2 Private Sector Team (PST) Since the standards adopt the applicant’s perspective. This accelerated processing of business permit renewal. the Chairman of the Committee on Ways and Means of the Local Council. Office of the Building Official.1 Technical Working Group (TWG) The first group to organize is the ST which is usually created by an Executive Order (see Annex 4) with the BPLO or the Treasurer as Chairman and the heads of the various LGU regulatory agencies involved in the BPLS process as members. Education and Communication Team (IEC) The IEC is an effective support mechanism of the BPLS reform initiative. Its main task is to steer the implementation of the BPLS reform process.3 Creation of Information. it will assist in analysing areas for reforms. the LGU needs to form a private sector team to provide this perspective and balance insights from the LGU as the work progresses.3. increased the number of renewals. home owners associations. market vendor associations. It can help sustain continuous improvement by providing feedback and ideas. 3. it can help ensure passage of local legislations on the streamlined process. The membership of the PST may include representatives from the trade associations. preparation of the BPLS action plan. and correspondingly increased the amount of collection on January 1 to 20 during the annual business permit renewal period. the City/Municipal Planning Ofice. . local chamber of commerce. guide members put the reforms in place. Template memorandum on the creation of the PST is found in Annex 6. The private sector team will share their experience in business registration during the diagnosis stage and provide feedback on the options generated by the Streamlining Team during the design and implementation stages. among others. building and mall administrators. Bureau of Fire Protection. Good practices show that implementing IEC helped businessmen prepare registration requirements and comply with regulations prior to the renewal period. namely. the BPL Office. 3. etc. and the City/Municipal Health Office. Through advocacy. the City/Municipal Treasurer’s Office. assist in creation of ordinances to support and institutionalize the reforms. Organizing Key Working Groups The MOA will trigger formation of the key BPLS groups that will implement the reform process: 3. Specifically. IEC helps:  Acquaint the public about the BPLS reform initiatives.  Notify businessmen and bookkeepers about BPLS requirement and procedures for new or renewal of business permits. .As a mechanism. The IEC team is created by an Executive Order or an Ordinance. These activities create favourable partnership between the LGU and the business sector and will make the BPLS reform environment transparent. customer friendly and clear. there are basically three proposals for undertaking this phase : (1) preparation of the process table. There are many approaches in analyzing the current LGU system for business registration. consultations in designated LGU offices. and comprehensible. This ensures comprehensive coverage and cooperation in the review of the process and revenue aspects of BPLS process. The IEC tools usually consist of fyers. predictable. Diagnosis It is good practice to start the diagnosis for improvement after the working groups are in place. In this manual. training and seminars. streamers. and business forum as well as tri-media announcements. Preparing the BPLS Process Table As an initial step in diagnosing the current BPLS in your LGU. 1. posters. (4) assessment of the BPLS forms. Educate businessmen on taxes. . (2) conducting the BPLS process assessment.  Acquaint businessmen of regular year round JIT activities.  Educate businessmen on regulations impacting business. The JIT plus the communications group of the LGU. the BPLS Streamlining Team should answer the diagnostic questions in Box 2 and document the responses in the template Process Tables shown in Table 6 below. and (3) review of the local revenue code. record. fees and charges related to BPLS. with the BPLO as coordinator can constitute the IEC team. How long (at the minimum. What is the cost/s for each requirement required in the step? (col. Diagnostic Questions: 1. BPLS Process Table Template PROCESS TABLE Proces Input Step No. What steps does the applicant need to do to apply for registration? (Col. 4-5) 4. how many persons from each office are involved in processing the step? (Col. In what office does the applicant accomplish the step? Where is it located (including the floor number)?(Col. What documents does the applicant need to submit for every step? (Cols. Excluding the applicant. of Signatori es (9) (8) Action Time Outpu to t Proces (10) s (11) (12) Total Total BOX 2.9) 7. a line number)? How long did it take for the LGU personnel to process the transaction? (Col. 10) 8. in minutes) does it take an applicant to walk to each office? How long does s/he have to wait in line or for an LGU personnel from whom something is needed (for ex.1) 2. What is the purpose (legal basis) of each step?(Col.11) . (1) 1 2 3 4 5 6 7 Total Nam e of the Step Output s Purpos e (3) No. What activities or tasks are the persons in the office doing in processing the step? (Col. of Form s (4) Documen ts Required (5) Total Total Cost Ofice Locatio n (6) (7) No.6) 5.Table 6.2) 3.7) 6.. What does the applicant get (document or information) from the step? (Col.9.12) . Table 7. namely. number of document required. the standards. Assessing the BPLS Process After completing the process table.2. indicate the existing practice. and number of signatories and the time of processing. areas of reform and the strategies of putting those reforms in place. the analysis of the current BPLS process against the standards is undertaken using Table 7 below. 45 . the designing a streamlined process may be facilitated by asking questions related to the standards (Box 3). BPLS Process Assessment Template Areas of Concerns Steps Documents Signatory Time (I) Existin g Practic (II) Benchmar k/ Standards (III) Identifie d Gap (IV) Areas of Reform (V) Reform Strategy Initially. Across each. number of steps. the gap between actual and standards. List the processes or areas of concerns in the first column. Look at the ‘Purpose’ column of the Process Table to check that a step serves a legal purpose. the next stage is the writing of the action plan. especially during peak periods long time? How long is the transaction time? Provide a separate window or different schedule for applicants representing many applications Compare it to the benchmarks. before the applicant is entertained by the frontline staf.Box 3: Guide Questions in Designing Streamlined BPLS Process Guide Questions Which of the requirements being asked of the applicant are the same for many ofices? (ex. If part of transaction time is for securing the signature of an official. if the reason is the information supplied by the applicant is incomplete or wrong. authorize more than one official to issue approvals . Putting in place an information-sharing mechanism among LGU Are applicants required to undertake Examine which of the steps are necessary and which can be many steps? Why? eliminated. For example. the DTI or SEC registration copy should only be required when the applicant first applies. Are applicants going to many ofices – within one building or to many buildings -Are lengthening time? applicantstravel waiting in line for a Add more frontline staf.. Copy of DTI or SEC registration) Possible Actions Reduce similar requirements to just one submission at the start of the process. Any information in the registration (ex. Enabling the sharing of information databases can reduce steps Are applicants being required to fill Unified Form and interfaces. capitalization) needed by other offices can be an information field in the unified application form. observe what is taking time for the frontline staf to process a transaction. If it is longer than good practices. provide written instructions or FAQs for example. name. out many application forms asking for the same information? (ex. address) After the analysis of the gaps and the One Stop Shop initial identifcation of the reform strategy. For ex. Decide whether service standards (time within which the service must be completed) can be imposed to complete a step. . for backroom processes? undertake process simplification to backroom processes. Using these guide questions.How long is the total processing time Compare it to the benchmarks. e.e.e. i. one month.Process Design 1. i. In addition. . persons responsible in implementing the activities. As this is done. 2 should be categorized according to the schedule of their implementation. each activity in col. i. the following information are important. Specific Activity Expected Results What steps What will result to take? from the steps? Date Responsib of le Implementat Unit/Perso n Whenion are Who is on activities to top? For be done? whom activities are done? Resource s Needed What are the inputs are needed? Support Needed What internal/exter nal supports to do this? Immediate – within 1 month Short-term – 1 quarter Mediumterm 1 semeste r Long-term The first step in preparing the action plan is to lift the strategies from the assessment table. resources and support needed to pursue the strategy. Workshop 4 Template Reform Strategy List from previous exercise . one semester. one quarter. Preparing the Action Plan The format for preparing the action plan is shown in Table 8 which takes of from the BPLS reform strategies formulated in the assessment table above Table 8. In documented good practices the BPLS reform strategies are usually on simplification of the processes to meet the standards. running information. making the joint inspection team (JIT) work. setting-up of the business one-stop-shop (BOSS) as common venue of BPLS transactions. education and .proper sequencing of the steps. Institutionalization 1. the Chairman of the Committee on Ways and Means of the Council. This will allow process simulation activities and parallel run to commence. These are gaps and areas for reform which are brought forward to the next stage of analysis. Their inputs can help refine the plan and their participation will generate understanding and support for the reforms. Legal Institutionalization Legal Institutionalization is a two-stage process. the Mayor. a good practice to get the key stakeholders to sign the plan. This is a tedious exercise. Getting Commitment to the BPLS Reforms Now that the team has a design for a streamlined process. it is also. 2. modernizing BPLS technology. it allow for final testing and further fine-tuning of the process. One way to do this is to prepare and sign a commitment statement which is an internally circulated document signed by all the offices involved in the project stating their intention to implement the proposed design. After presentation. it is always beneficial to begin implementing the plan by presenting the action plan to the key stakeholders. Process simulation is a good exercise in preparing for implementation. as proven by his or her signature. Annex --provides a sample where each member of the team ensures the agreement of their superiors.communication campaigns (IEC). The first stage requires an executive order (EO). Parallel runs are the next pre-implementation step prior to launching. This transforms the reform into a city ordinance. and the heads of private sector organizations in the locality. and setting the legal framework in institutionalizing BPLS. This is a good confidence building exercise among employees. The last stage in the legal institutionalization is the City Ordinance (CO). Implementation 1. . capability building of the staf. However. namely. This is done in a simple ceremony. Presentation of the Action Plan As good practice. the Vice Mayor. which is why this commonly skipped. it must work towards the formalization or institutionalization of the design. This prepares the employees to get a firsthand experience on how the new process. The EO gives legal basis for the implementation of the proposed reform. Parallel run means running the proposed process side-by-side with the old process. if a permanent location is available. and the backroom support.2. directions and working stations of service providers. it is more preferable to organize the BOSS in that location. have enough space to accommodate the office equipment used in BPLS operation. the BOSS should be wide enough to accommodate all frontline operators. City of Manila In terms of area. However. Box 4: Sample layout for BOSS. and  Fast lane for senior citizens and applicants with disabilities The BOSS can start in a temporary location at the initial stage just to ensure the needs during the renewal period in January are met. Designing the Business One-Stop Shop (BOSS) After incorporating the inputs of the stakeholders to the plan (if any). Finally. the Business One. The following considerations to remember:  Physical set-up that considers trafic fow of the process.  Desk oficer’s corner or clients assistance center. It should also. there should be enough space for a customer’s lounge where applicants will be seated to wait for the processing of their .Stop-Shop is organized.  Signage indicating steps. We can add a cable . The amenities in the BOSS include the air conditioning. drinking water dispenser. comfortable tables and chairs.applications. reading materials and hot cofee dispenser. Figure 6. Initial implementation is done in real time (during the immediate renewal period) and evaluated for improvement. It is also a good practice to make dry run of the JIT and the IEC by undertaking test JIT inspections and conduct of test IECs. the JIT and the IEC. A sample set-up of a BOSS is illustrated below.television which can be used to entertain the applicants while waiting for their business permits. This process will help fine tune the new BPL system as well as surface out problems that were not anticipated in the planning of the reforms. The refinements will help improve the system before it goes full swing and help the implementers deal with potential problems ahead of full implementation. it is important to finalize the work and financial plan based on the anticipated operations of the BOSS. A dry-run of the BOSS towards which all streamlined processes are directed will come next. . this will be presented for approval of the City/Municipal Mayor. Once ready. Business One-Stop-Shop Business One-Stop-Shop (BOSS Center) START Step 1 Step 4 R E L E A S I N G Step 2 Step 3 PAYMENT Step 2 E V A L U A T I O N A S S E S S M E N T After the dry runs are complete. 000 (not higherend.000 for every three users It is expensive Has security issues PHP3. it is more efficient to attach a printer Microsoft Windows  Familiar to most users Microsoft Office  Familiar to most users Appropriate Cost (as of May 2008)(mid PHP25. but functional)  If security is low. the desire to computerize must be properly balanced with the following: (a) available budget.3. (e) data that needs to be captured. Tools for Computerization Program Equipment Benefi t Desktop Computer  Less time consumed in filing in data  Easy access to database  Immediate upload of data into the information system  Upgradable peripherals  May be placed on a per basis in filing Laptop Computer  step Less window time consumed Disadvantage  Will not function during range) power failures  Obsolescence in a few months  Stationary in one desk  in data  Easy access to database  Immediate upload of data into the information system  Upgradable peripherals  May be placed on a per step/ window basis  Portable and may be moved to diferent station depending on demand per step  Can function for a limited Printer  Fast generation of fees. It helps speed up the process and increases the capacity to accept more registrant within the same amount of time. Computerization of BPLS Operations Computerization is an essential component of BPLS operation. However. (b) volume of registration. and (f) LGU capability to maintain the system. receipts. Table 9. approvals. some civil servants may print important documents arbitrarily if printer is readily available to everyone  It is expensive  Has security issues      PHP7. inspections and permits  Although printers may be shared by a few computers. (c) willingness of user to learn and use the system.000 (laserjet)  PHP7. (d) current level of IT infrastructure.000   Obsolescence in a few months Difficult to upgrade peripherals PHP30.500 (inkjet) PHP11. Table 9 provides some guide in buying computer equipment for BPLS implementation.000 per computer . The representative from the Information Ofice of the Streamlining Team should spearhead the drafting of the Communications Plan. The external communications plan should utilize all media. The Communications Plan must cover the period from the time that the EO authorizing the project is issued and publicized to until after the official launch. Types of Communication Strategies Collateral Business Cards Phone Calls Benef it  Personal touch for LGU frontliner  Contains all contract information Pro-active marketing of new system Disadvantage  Some if not most recipients find phone calls too obtrusive Approximate Cost (as of May  PHP150+/box of 300  Free . Users need a few days to familiarize themselves with this system Will incur costs for training Appropriate Cost (as of May 2008)  Free Preparing a BPLS Communication Plan Communication. Both target audiences must therefore be aware and understand the LGU’s simplification plans. Remember that one of the objectives of simplifying the process is for informal businesses to decide that it is worth their time and effort to formalize. both internal and external. Business owners who are studying the feasibility of starting a business may also consider the LGU’s registration process as one factor in where to locate. is critical in realizing the benefits of simplification. especially the web. Table 10. Table 10 below presents the types of communications strategies that LGUs can adopt.Equipment Linux System Benefi t  Free Disadvantage   4. brochures) will use a similar template and give a very professional feel to LGU  Can be posted on location  Contains all steps. service orientation and preferably very knowledgeable about not just the assigned task but the whole registration process. webmaster  Can only be accessed via internet  If not secure. envelops. how they act and behave in front of the investor creates the “impression” of what it is like to do business in the city/municipality.000-5. Part of the training should include customer management. budget headsets. Powerpoint presentation.000 monthly  Salary of webmaster  Depends on type of brochure  Honoraria for designer. It too. if needed  For tarpaulins – PHP25/sq foot  Frames range from PHP2. Sustaining BPLS Reforms 1. provides a system of communicating the important lessons . can be hacked  Good ones are expensive  Limited copies depending on amount printed  Domain registration $10  Web hosting (depends on plan availed)  Internet connection PHP4. Through the information that are gathered the M&E will serve as a management control tool that will enable the LGU to follow up progress in instituting the BPLS standards. it is important that the frontline personnel are properly trained. Thus. websites. Contains all information  Information can be accessed any time at convenience of applicants/clients  Can accept all forms of inquiries  Can contain downloadable forms  Can also host a form where clients/applicants may post  Very business like  Can be given to potential investors  Contains truncated version of BPLS  This means that all mediums Website Brochure Templates (letters.000 each Training Frontline Personnel in Customer Service The frontline personnel is the “face” of the local government.  Need to updated regularly  Need to be maintained by a point person. requirements and other relevant information Signage 5. Putting in Place Monitoring and Evaluation System It is important to put in place the monitoring and evaluation (M&E) system as a mechanism to sustain implementation of the reforms (see Annex 7: Sample M&E).000 to 5. .learned that can be basis to improve performance and guide future planning. 2.More importantly. computer literacy. who facilitates BPLS. Capability Building and Strengthening Simultaneous with the building of the BPLS organization is the need to upgrade the performance and skills of the staf. the M&E system will serve as a built-in mechanism in creating accountability and transparency. which promote greater responsibility and efficiency in achieving results. These organizational elements in place will give assurance to the sustainability of the reforms regardless of leadership change. But by now. This shall enable the LGU to effectively implement and sustain the BPLS reforms. This requires conduct of staf training on the improved BPL system and on new practices that evolved from the reforms (frontline management services. assessment. the aspect of institutionalizing reforms and the aspect on personnel development. This will help the Treasurer. the Mayor and the Sangguniang Bayan in making strategic decisions about the project. records management. Coordinating all regulatory functions is a primary responsibility of the Mayor that is usually delegated to the BPLO. orientation on LRC and Local Government Code. the BPLO and C/MLGOOs about things that are going wrong or going right in the implementation of BPLS. Complementary to this is the need for an ordinance that creates the JIT and IEC composite groups under the operational oversight of the BPLO to provide support to the BPL operations. 4. team building etc). Building and strengthening of BPLS capability has two facets. namely. This underlies the need for an ordinance creating an organic BPL Office in the LGU with a regular plantilla position for the BPL Officer (see Annex 8: Sample EO Creating BPLO). On institutionalizing reforms. It too serves as mechanism for oversight. the Treasurer. monitoring serves as a tool that will help check whether the BPLS reform process is still relevant or aligned with its intended purpose. it has become clear that BPLS is a regular all year round function of the LGU that requires proper office and staffing and not just an adjunct assignment in January as commonly perceived. Yet this has been overlooked. the issue of having a permanent BPL Office and staf has to be addressed. Challenges in Implementing BPLS Reforms . Finally. The information gathered could alert the Mayor. .The challenges in introducing BPLS reforms are great. On one hand. Consider the following list of the common complaints of taxpayers securing business permit from LGUs listed in the box below. there are important challenges in responding to the attitude of the business sector to government. This is an important object of the changes that are planned but the hurdles are there. This can be discouraging. Im p le m e n ta tio n o f m a n d a te s a r e h a p h a z a r d ly d o n e fo r c o m p lia n c e p u r p o s e s . too Politician oftentim es intervenes in the im po sitionof sanctions on erring business oper ators. L a c k o f p r o p e r fa c ilitie s a n d e q u ip m e n ts . but the greatest challenge to the BPLS team is then to get the trust of the businessmen that changes being introduced are for real and will be sustained. Highly political. The greater challenge is to deal with the bosses. o L a c k o f te c h n ic a l k n o w h o w o f in s p e c to r s . Processes and procedures a r e b a s e d o n tr a d itio n s a n d “u s e d to ” s c h e m e . L a c k o f m a n p o w e r a n d lo g is tic s . As to the staf. the Vice Mayor and the Council Members. Organizational set up is not supportive of theregulatory function of the LGU. Im plem entation of processes is relative to who eversits as head. The first response one gets when announcing the reforms to them is one of disbelief. there are two aspects of challenges: one is with the people assigned to do the job and the other is with the bosses. The list of challenges below will acquaint you with what to expect. who are politicians. There are so many: the Mayor. it is not surprising to encounter some members of the business sector who have turned sceptical.After years of living with those facts about the bureaucracy. too m uch m uchpoliticking of officials. 60 . There is no sustainability of im plem entatio n. Internally. consider the list in the box below. politicized.  W h a t a r e t h e p r e v a le n t s i t u at ion s i n m o s t L G U s ? N o p r o p e r o r ie n t a tio n o f e m p lo y e e s a s t o th e ir r e s p e c tiv e r o l e a n d fu n c tio n in th e o r g a n iz a tio n M is fits e m p lo y e e s b e c a u s e f th e p a d r in o s y s te m . . Finally. Consider the following thoughts.But all the foregoing are exactly what the BPLS reforms seek to address. What is important is that all those involved in the BPLS reform process are aware that introducing the changes will not be easy and smooth sailing. . The reform will only be efective if everyone involve in BPLS recognizes the principle that as government employee. we have to manage the change process. The biggest challenge is getting everyone aligned. we are the servants and not the boss. And as servants. Towards that are the following recommendations. it is our duty to see to the comfort and convenience of our masters and not the other way around. but the collective will of the public servants . In planning for the reform. A feedback m echanism should be installed to efectively evaluate and m onitor the im plementation. It is not just the political will of the leadership. Streamlining the business registration process is not an easy undertaking. The afected ofices should recognize the need for reform.OVERCOMING THE CHALLENGES Change is always faced with opposition. The m ayor should be m ade aware of the existing situation which is the target of the reform . everyone involve should be required to participate to have a feel of involvement and thereby be an afective agent of change . Feedback should be sought not only from the client but also from the em ployees involved. One of the key requirements for success is the commitment of all people in the local government. gov. http://www.References DILG.dilg. Primer on RA 9485: the Anti-Red Tape Act of 2007.pdf .ph/attachments/0000/0381/primer_antired_tape. Annexes Annex 1: Joint Memorandum Circular REPUBLIC OF THE PHILIPPINES Joint Memorandum Circular No.0 Statement of Policies .0 Purpose 1. 1. 1. THE BUREAU OF FIRE PROTECTION (BFP) AND CITY AND MUNICIPAL MAYORS AND CITY AND MUNICIPAL COUNCILS SUBJECT: GUIDELINES IN IMPLEMENTING THE STANDARDS IN PROCESSING BUSINESS PERMITS AND LICENSES IN ALL CITIES AND MUNICIPALITIES 1.3 To clarify the roles and responsibilities of the Department of the Interior and Local Government (DILG).2 To provide the guidelines for streamlining the business permits and licensing systems (BPLS) in cities and municipalities in accordance with the service standards which the national government is setting consistent with Republic Act No. the Department of Trade and Industry (DTI). otherwise known as the Anti. 2010 TO: THE REGIONAL AND PROVINCIAL DIRECTORS OF THE DEPARTMENT OF THE INTERIOR AND LOCAL GOVERNMENT (DILG) AND THE DEPARTMENT OF TRADE AND INDUSTRY (DTI). 2. 01 (Series of 2010) August6.1 To disseminate the service standards in processing business permits and licenses which cities and municipalities are enjoined to follow. and the various cities and municipalities in the country in ensuring the implementation of the BPLS standards.Red Tape Act of 2007 (ARTA). 9485. 2. This can only be achieved through reforms that reduce the cost of doing business in the country and address the other policy issues that discourage international and local investors.1 The government recognizes the importance of improving its growth potential through enhancing its competitiveness at the national and local levels. . 3 Business Permit – is a document that must be secured from the city or municipal business permits and licensing office for the business to legally operate in the locally. to the collection or preparation of a number of documentation. respectively. 3. 3. Both agencies will conduct the necessary capacity building programs to enable LGUs to comply with the BPLS standards. The ARTA. which provides the legal basis for re-engineering current business processing systems at the local level.2 Business One-Stop-Shop (BOSS) – refers to an arrangement where a single common site or location is designated for all concerned agencies in the BPLS system to receive and process applications for business registration thru a streamlined system. 3. all government instrumentalities are mandated to provide efficient delivery of services to the public by reducing bureaucratic red tape and preventing graft and corruption. but not limited.5 Frontline Service – refers to the process or transaction between clients . coordinate with other government agencies involved in the BPLS to similarly streamline operations and assist in generating resources for the BPLS streamlining project. under the Philippine Development Forum (PDF) agreed to jointly undertake the nationwide streamlining of BPLS. This project is one of the first major undertakings of the Sub-Working Group on Local Investment Reforms which was organized as a result of a Memorandum of Agreement (MOA) between DTI and DILG. approval or disapproval made by a government agency or office on the application or request submitted by the client for processing.4 Business Registration – is a set of regulatory requirements an entrepreneur must comply with to set-up a business entity including. approval of application submitted. 2. licenses.0 Definition of Terms 3.1 Action – refers to the written acknowledgement of receipt. and receipt of a formal certificate or multiple certificates. 9485. and the likes which confirm the eligibility to operate as a legitimate business entity. 3.3 The DILG and the DTI. the notarization and/ or verification thereof. and providing penalties thereof. permits.2. 3.2 Pursuant to Republic Act No. as Conveners of the Working Group on Decentralization and Local Government and the Working Group on Growth and Investment Climate. submission to various national and local government authorities. sets benchmarks for processing simple and complex transactions which should be applied to BPLS nationwide. right. license. . permit.and government offices or agencies involving applications for any privilege. reward. concession. renewal or extension of the enumerated applications and/or requests which are acted upon (action) in the ordinary course of business of the agency or office concerned. or for any modification. 1 All cities and municipalities shall ensure that applicants for business registration shall follow five (5) steps in applying for new business permits or for business renewals: . The adoption of the unified form is anticipated to contribute to reduction of steps and time in applying for business permits.10 Processing Time – refers to the time spent by an applicant from application to receipt of the business permit consisting of transaction time. 3. All cities and municipalities shall use a single unified form in processing new applications for business permits and business renewals (refer to Annex 1: BPLS Unified Form). 3.1 Unified Form.3. The unified form consolidates all the information about a business registrant needed by various local and national agencies. 4. waiting time and travel time within the site provided by an LGU for business registration.6 Inspection – refers to the action of checking or examining compliances of business establishments to business regulations.11 Unified Form – is a single common document issued by an LGU to a business applying for registration that contains the information and approvals needed to complete the registration process and facilitates exchange of information among LGUs and National Government Agencies.2 Standard Steps 4. 3.0 BPLS Reform Standards All cities and municipalities are enjoined to follow the following standards in processing business permits and licenses: 4.9 Steps – refer to an action or actions that applicants and/or government agencies undertake as part of the process of applying for and/or processing business permits and licenses.8 Signatories – refer to the final approving authority or authorities whose signatures are affixed to a business permit or mayor’s permit to make the document legal and binding in the eyes of the law.7 Joint Inspection Team (JIT) – is composite team whose members come from the various LGU agencies implementing business-related regulations created and authorized by the LGU through an Executive Order or Ordinance to conduct joint inspection of business enterprises instead of individual inspections. 3. 4. 3.2. (2) Filing or submission of the accomplished application form with attached documentary requirements (e. location map and barangay clearance).(1) Securing an application form from the city or municipality. .g. SEC/DTI/CDA certificate of registration. as shown below: (1) Processing of new business permits. fees and charges.3 Standard Processing Time. Consistent with ARTA. (4) One-time payment of taxes. 4. the City/Municipal Treasurer’s Office and the Bureau of Fire Protection shall be organized to conduct joint inspection of business enterprises as required by law. (2) Joint inspection teams composed of the heads and representatives of the Business Permit and Licensing Office. all cities and municipalities are enjoined to comply with the prescribed time for processing of business registrations. 4. building and fire safety ordinances. Annexes 2 and 3 illustrate the standard steps which applicants shall follow in securing the Mayor’s Permit for new business applications and business renewals. the City/Municipal Health Office. inspections to check compliance with initial submissions during construction stage will be undertaken within the year after the issuance of the business permit.(3) One-time assessment of taxes. fees. and . (3) The Joint Inspection Team shall be headed by the Business Permit and Licensing Officer who shall oversee joint inspection operations. to implement streamlined procedures for assessing and paying fire code fees that will enable the LGUs to implement that above steps. which is classified as a complex transaction following the ARTA classification. LGUs are enjoined to strive for 5 days which is the average processing days in LGUs with streamlined BPLS. shall not take more than 10 days for the release of the permit. the City/Municipal Engineering Office.2. (5) Securing the Mayor’s Permit upon submission of Official Receipt as proof of payment of taxes. health and sanitation undertaken during the construction stage shall not be conducted again by the LGU as part of the requirements for business registration. and charges imposed by the LGU. Instead. (4) The Bureau of Fire Protection shall enter into a memorandum of agreement with cities and municipalities. the Zoning or City/Municipal Planning & Development Office. However.2. fees and charges. Compliance with the above standard steps will require the following: (1) Inspections usually undertaken for compliance with zoning and environment ordinances. as necessary. All cities and municipalities shall follow the prescribed number of signatories required in processing new business applications business renewals to five days following the ARTA. alternate signatories (e. which is classified as a simple transaction. shall not take more than 5 days for the release of the permit. 4. the Municipal or City Administrator or the BPLO) may be properly deputized by the Mayor. . which is the average processing time in LGUs with streamlined BPLS. the Mayor and the Treasurer or the BPLO.4 Signatories. However. namely.(2) Processing of business renewals. LGUs are enjoined to strive for one day processing.g. However. LGUs are enjoined to require only two (2) signatories. To avoid delay in the release of permits. 5.0 Implementation of the BPLS Standards 5.1 All cities and municipalities are enjoined to implement the BPLS standards as described in Section 4 above. The government identified priority cities and municipalities whose implementation of the BPLS standards will be closely monitored since these LGUs: (a) constitute the critical mass of establishments in the country; and (b) they have been identified as having good potentials in generating investments in the four priority sectors of government, e.g. business process outsourcing (BPO-IT), tourism, mining and agribusiness. Annex 4 contains the list of priority LGUs. 5.2 The government shall be organizing training workshops and coaching sessions for the LGUs in the priority list mentioned in section 5.1 on October-December 2010. At the same time, the government shall be issuing an operations manual to guide LGUs in re-engineering their BPLS to conform to the BPLS standards mentioned in section 4. 5.3 The cities and municipalities not included in the priority list per section 5.1 shall undertake BPLS streamlining on their own through enrolment in training programs that will be provided by the LGA and other private sector providers. 6.0 Roles and Responsibilities 6.1 Local Government Units (Cities and Municipalities) 6.1.1 The LGUs, represented by the Local Chief Executive/Mayor, shall coordinate with DILG and the DTI in the implementation of BPLS standards and shall: (a) organize Technical Working Groups (TWGs) to oversee the implementation of the streamlined BPLS; (b) ensure the participation of LGU representatives in all BPLS reform activities that are initiated by the DILG and DTI at the LGU level; (c) issue and implement the requisite orders, ordinances and directives relative to the BPLS reform; and (d) provide the enabling environment for BPLS reforms, namely, the legal framework, the budget and logistical support necessary in instituting BPLS reform standards to include, but not limited, to manpower, creation of the one-stop-shops, organization and activities of joint inspection teams (JIT) and performance of information and education campaigns (IEC). 6.2 Department of the Interior and Local Government 6.2.1 The DILG, together with the DTI, shall coordinate the upscaling of the BPLS reforms nationwide and in coordinating the requirements for BPLS streamlining in LGUs among its regional, local government operations officers, its bureaus and attached agencies. The Local Government Academy (LGA) under the DILG shall act as the overall coordinator of the nationwide streamlining of BPLS of LGUs. The DILG regional offices, on the other hand, shall organize a regional BPLS Coordination Committee, together with the regional ofices of the DTI, to oversee the implementation of the BPLs project at the local level, with membership coming from concerned government agencies, local chambers and other stakeholders; 6.2.2 The DILG, together with DTI, shall organize and co-chair a BPLS Oversight Committee which will provide the overall policy direction in the nationwide up scaling of the BPLS Reforms. 6.2.3 The DILG, as Co-Convener of the Working Group on Decentralization and Local Government under the Philippine Development Forum, shall promote the BPLS project and take responsibility in enjoining the development community to support the project. 6.3 Department of Trade and Industry 6.3.1 The DTI, together with the DILG, shall be responsible for coordinating the implementation of the BPLS reform project nationwide, in coordinating the requirements for BPLS streamlining in LGUs among its regional and provincial offices and in setting up a monitoring system for tracking the progress of LGs in reforming their BPLS. It shall organize and co-chair the BPLS Oversight Committee which will provide the overall policy direction in the nationwide up scaling of the BPLS Reforms. 6.3.2 Considering its mandate to promote investments and enhance competitiveness both at national and local levels, the DTI shall be responsible for identifying the priority LGUs that will be included in the BPLS program and in annually evaluating the list, together with the DILG, based on the sector priorities of the government and other criteria that will be deemed necessary. 6.3.3 The DTI, as Co-Convener of the Working Group on Growth and Investment Climate under the Philippine Development Forum, shall promote the BPLS project and take responsibility in enjoining the development community to support the project. 7.0 Enforcement Clause This Joint Memorandum Circular shall enforce all the provisions of Republic Act No. 9485 or Anti- Red Tape Act of 2007 and its Implementing Rules and Regulations. 8.0 Separability Clause If any clause, sentence or provision of this Joint Memorandum Circular shall be invalid or unconstitutional, its remaining parts shall not be affected thereby. 9.0 Repealing Clause All orders.0 Efectivity This Joint Memorandum Circular shall take efect immediately. 10. JESSE M. rules and regulations inconsistent or contrary to the provisions of this Joint Memorandum Circular are hereby repealed or modified accordingly. Secretary Department of Trade and Industry 76 . ROBREDO DOMINGO Secretary Department of the Interior and Local Government GREGORY L. /Mobile phone no. Building Name Building Name Unit No.: DTI/SEC/CDA date of registration: Type of Organization: Single Partnership Corporation CTC No. No. of Employees in Establishment: Partnership Corporation to Single Middle Name Owner’s Address If Place of Business is Rented. Unit No. No./Bldg. No. Tel. In case of Emergency: Business Activity Code Line of Business Subdivision City/Municipality Province Email Address: Contact Person/ Tel No./Bldg./Bldg. No. please identify the following : Lessor’s Name # of Employees Residing in LGU: Monthly Rental: Last Name: First Name: Middle Name: Lessor’s Address House No. Email Address Email Address Property Index Number (PIN): Business Area (in sq m): Total No. No. Street Street Barangay Barangay Subdivision Subdivision City/Municipality City/Municipality Province Province Tel.: Transfer : Ownershi Datepof Application: Reference No. TIN: Are you enjoying taxCooperative incentive from any Government Entity? ( ) yes ( ) no Please specify the entity: Name of Tax payer: Last Name First Name Middle Name Business Name: Trade name/Franchise: Name of President/Treasurer of corporation: Last Name First Name Business Address House No./email address: Gross Sales / Receipts (for renewal) No. No.Annex 2: BPLS Unified Form Annex 1 (Page 1 of 2): Application Form for Business Permit TAX YEAR CITY/MUNICIPALITY New Renewal Additional Amendment: Mode of Payment From Single to Annually From Single to Bi-Annually From Partnership Quarterly From Partnership to Corporation From Corporation to Single DTI/SEC/CDA Registration No. Of Units Capitalization (for new Essential Non-essential business) Oath of Undertaking : I undertake to comply with the regulatory requirement and other deficiencies within 30 days SIGNATURE OF APPLICANT OVER PRINTED NAME: POSITION/TIT LE . Street Barangay Tel. House No. Bldg. please specify: Assessment reviewed by: VERIFICATION OF DOCUMENTSDate Issued Ofice/Agency VERIFIED BY: (BPLO Staf) Barangay Zoning Admin. Incomplete application form will be returned to the applicant. Official City Fire Dept. Approval Recommended by: Instructions: 1. . 2. City Health Dept. Ensure that all documents attached to this application form are complete and properly filled out. Provide accurate information and print legibly to avoid delays. 000-000ASSESSMEN REFERENC TS: AMOUNT PENALTY/SURCHA E DUE RGE TOTAL ASSESSED BY Tax on delivery vans/trucks Tax on storage for combustible/fammable of explosive substance Tax on signboard /billboards REGULATORY FEES AND CHARGES Mayors Permit Fee Garbage Charges Delivery Trucks/Vans Permit Fee Sanitary Inspection Fee Building Inspection Fee Electrical Inspection Fee Mechanical Inspection Fee Plumbing Inspection Fee Signboard/Billboard Renewal Fee Signboard/Billboard Permit Fee Storage and Sale of Combustible/ Flammable or Explosive Substance Others: Descriptio n Barangay Clearance Zoning Clearance Sanitary / Health Clearance Occupancy Permit Fire Safety Inspection Certificate Others.Gross Sales Tax LOCAL TAXES Annex (Page 2 of 2): Application Form for Business Application No. . Lin Standa e rd Actual vs. Plan Varianc e Actual vs. pls. 2009 Documentary Requirements Number of Steps Number of Signatories Table 2: Number of Registered Business Establishments Particulars 200 8 Old Establishments 200 9 VARIANCE New Establishments Closed Establishments Table 3: Permits/Licenses Applied versus Permits/Licenses Issued FY Permits Applied Permits Issued Variance 2008 2009 Total Table 4: Local revenue collection generated from Permits and Fees Categor 3 Years Before Immediate Past Year y Current Current Year Business Permits Regulatory Fees Total Table 5: Information. specify period Continuous (year round) Considerations Standard Processing Time Number of Table 1: Business Permits and Licensing Process 2008 2009 Plan Actual Actual Base vs.Annex 6: Sample Monitoring and Evaluation (M & E) Form General Information NAME OF LGU: INDICATORS: Income Class Presence of Business One-Stop-Shop (BOSS) BPLS Flowchart installed Customer Complaint Desk (Date of Installation. Desk Officer) Computerized Regulatory System/ Processes Nature of Operation of OSS/ PC: Seasonal. 200 8 Actu al vs. Education. Campaign (IEC) activities conducted IEC Activities Previous Current Actual Year Year’s Current Pla Yea n r Number of Establishments Inspected Varianc e Actual vs. Number of Establishments Registered Total Problems/Issues/Concerns during the implementation of BPLS: Remarks: Submitted by BPLO: . It shall be the duty of the Licensing Officer to establish and maintain a record of all businesses in the municipality. do hereby order: Section 1. MARIÑAS Municipal Mayor i The title of RA 9485 is “ AN ACT TO IMPROVE EFFICIENCY IN THE DELIVERY OF GOVERNMENT SERVICE TO THE PUBLIC BY REDUCING BUREAUCRATIC RED TAPE PREVENTING GRAFT AND CORRUPTION. 2008. Any order contrary to the foregoing are hereby automatically repealed.2 Records Maintenance Section 2. Cebu. Section 5. MARIÑAS. TERESITO P. This shall take efect January 1. I. TERESITO P.Annex 7: Sample Executive Order Creating the Business Permits and Licensing Ofc e EXECUTIVE ORDER No.1 Receiving/Releasing 2. The Licensing Officer shall ensure that requirements are complied with before any permit will be issued to the business operator per prescribed process steps. The Office shall be in. Creation of PERMITS AND LICENSES OFFICE which shall be headed by a Licensing Officer with the following support staf: 1 Licensing Inspector 2 Clerks: 2.AND PROVIDING PENALTIES THEREFOR” ii Based on the Primer on RA 9485 . Section 3.charge of the processing of the application of business permit of the various businesses in the municipality. by virtue of the power vested in me by law. 2008-02 CREATING THE PERMITS AND LICENSES OFFICE UNDER THE OFFICE OF THE MUNICIPAL MAYOR WHEREAS. Section 6. th DONE this 28 day of December 2007 in the Municipality of Barili. It shall be the duty of the said office to come with the appropriate forms necessary in the processing of business permits Section 4. Section 7. in compliance with the pertinent laws and regulations and in the pursuit of serving the public efficiently there is a need to create a Permits and Licenses Office under the Office of the Municipal Mayor NOW THEREFORE.